Is Consolidated (CARS) Demand Violating HIPPA?

Recently, a client sent me a list of requirements which they were sent during the on-boarding process with Consolidated Asset Recovery Systems (CARS). Their agency was required to comply with the demands in order to receive accounts from CARS. Upon reading, one of these demands immediately raised the red flag. As it read:

“Please find a list of the following items that must also be submitted to complete the onboarding process…

Employee List with corresponding copy of background check and drug test for each employee.”

In case the powers that be at CARS are unaware, releasing drug testing results is a direct violation of HIPPA regulations.

Federal statutes, including HIPAA, the ADA (Americans With Disabilities Act²), and other employment laws (eg, the Drug-Free Workplace Act (DFWA), the Fair Credit Reporting Act (FRCA), and U.S. Department of Transportation regulations) require companies to treat test results as confidential. Most states regard drug-testing results as confidential, as well.

Drug test results may not be disclosed to third parties except as required by law or pursuant to a court order. This can include an investigation or litigation concerning a claim related to the drug test, such as an employment issue, workers’ compensation, or a criminal matter.

Requirements from repossession forwarding companies, who very often are not held to the same standards as the actual recovery agency, have become increasingly outrageous. Now it appears that they may be attempting to over step the boundaries of Federal and State mandated regulations by illegally insisting that agencies violate these laws.

An agency already incurs the expense of drug testing policies and the actual testing itself. Providing documentation that your agency has implemented and maintains a work place, no tolerance drug policy and testing, more than satisfies any need on the part of the forwarder.

Shame on Consolidated Asset Recovery Systems. We’d love to hear why current drug policies are not sufficient for your company and why you require collateral recovery agencies to violate current statutes. Are your financial clients aware of this?

Dave Branch
Dave@Repo.Buzz

You work hard to remain compliant. Keep it that way.